MFIs Move into SMEs

FEBRUARY 2012 – Microfinance Institutions are very interested in upscaling their services for Small and Medium Enterprises (SMEs) and in helping to close the much-debated credit gap. This can be concluded from a survey of Triple Jump’s clients by Triple Jump Advisory Services.

Of the 90 respondents, 56 (62 per cent) expressed explicit interest in the SME market – 41 of the 56 already have SME experience and/or are interested in scaling their services to the SME market.

Small and medium enterprises generate up to 50 per cent of the jobs in developing economies. Despite the huge impact of SMEs on economic development, these enterprises only have limited access to financial services. Especially the smallest segment of the SME market remains out of reach of traditional financial institutions, because of its informal nature and the high operating costs associated with serving this market.

In order to understand the role that Triple Jump and its investees can play in closing the credit gap, we conducted a survey among our investees. The results are very promising. The investees have started reporting positive experiences with graduating customers.

However, upscaling MFI services cannot occur without additional support in strengthening credit methodology, understanding the market and building the capacities of the staff. For further information concerning the survey, please contact marnix@triplejump.eu.